Casper Sleep Inc. and its subsidiaries, design and sell premium sleep products, including mattresses, pillows, sheets, and other sleep-centric products.
The company operates as a multi-channel Sleep company. It offers a portfolio of obsessively engineered sleep products, including mattresses, pillows, bedding, and furniture, through its e-commerce platform, Casper-owned and operated Sleep Shops across North America and a list of retail partners. As of December 31, 2020, the company distributed...
Casper Sleep Inc. and its subsidiaries, design and sell premium sleep products, including mattresses, pillows, sheets, and other sleep-centric products.
The company operates as a multi-channel Sleep company. It offers a portfolio of obsessively engineered sleep products, including mattresses, pillows, bedding, and furniture, through its e-commerce platform, Casper-owned and operated Sleep Shops across North America and a list of retail partners. As of December 31, 2020, the company distributed its products directly to customers in North America through its e-commerce platform, 67 Casper retail stores, and over 20 retail partners.
Strategy
The key elements of the company’s strategy are to increase brand awareness and equity to acquire new customers and build enduring brand love; expand direct-to-consumer presence and network of retail partnerships; and continue leadership as a sleep destination.
Products
The company designs products to address the full Sleep Arc. Its design philosophy is centered on the idea that sleep is both deeply technical and highly personal. It offers a limited selection of distinct products in each category at various price points, which target a range of consumer needs and budgets. As it expands the company’s product portfolio, it intends to develop sleep products that address the factors of sight, sound, smell, touch, temperature, humidity, and body position across the full Sleep Arc. Its product and services portfolio as of December 31, 2020, included six categories, such as mattresses, soft goods, furniture, connected sleep, accessories and third-party products, and services.
Mattresses
The company’s thoughtfully-designed mattresses provide comfort, including ergonomic support, thermal comfort, pressure relief, motion isolation, realignment, and long-term durability. It offers mattresses at multiple tiers to address the needs of different consumers, such as the Casper Wave Series, Nova Series, Original Series, and Element Mattress. Each of its mattresses has its signature Just Right feel and utilizes a highly breathable, bouncy, soft top layer over a pressure relieving memory foam layer, which is designed to support, comfort, and cool the body. All of its mattresses are designed and engineered in-house by the research and development team at Casper Labs. Additionally, each of its mattresses sold through its direct-to-consumer channel has a 100-night, risk-free trial and a 10-year limited warranty. All mattresses are compressed, roll-packed, and shipped in the company’s box and delivered to customers through common carrier delivery, in-store pick-up, or in-home set-up.
Soft Goods
Sleep soft goods, such as pillows, sheets, and blankets, offer both emotional and functional benefits for consumers. Soft goods have a measurable impact on sleeping quality through breathability, humidity management, and ergonomic support. The company has created a line of soft goods that balances the emotional and functional considerations, offering pillows with design features and multiple fill options, sheets, duvets, weighted blankets, mattress protectors and throw blankets.
Furniture
The company created a line of furniture that was rigorously designed and tested to further support a positive sleeping experience for its customers. Its furniture offerings provide a natural attachment to its mattresses and consist of a variety of static and adjustable bed frames, including the Casper Haven Bedframe and Casper Repose Bedframe, its newest bedframes launched in August 2020.
Connected Sleep
The company’s Glow Light leverages both science and emotion to enable better sleep throughout the complete Sleep Arc and is complemented by the Casper Glow app (available on both iOS and Android) for setup and customization.
Accessories and Third-Party Products
The company designs products and services across The Sleep Arc. Its accessories and third-party products address various needs along The Sleep Arc and help promote sleep quality for consumers. Its accessory products include the Casper Nap Pillow, Mattress Topper and Dog Bed. Casper is frequently approached by other companies seeking to introduce their products to its customers. Likewise, its customers look to it for recommendations on additional products that can help them achieve better sleep.
Services
The company offers services that complement and complete the sleep experience. Its service offerings are focused on providing a seamless purchase and delivery experience, offering an extended warranty and providing a range of financing and delivery options.
In 2019, the company launched The Casper Sleep Channel—providing complimentary and engaging social media platform offering meditations, bedtime stories, and sounds to help you fall asleep. The Casper Sleep Channel content is informed by members of the company’s Sleep Advisory Board. With the launch of The Casper Sleep Channel, the company is demonstrating its leadership across the Sleep Arc and further owning the hour before bedtime.
Consumer-Centric Multi-Channel Strategy
The company offers a consistent Casper experience that is centered on sleep across all channels. As consumers move between the online and offline channels to inform their decisions, the company works tirelessly to engineer shopping experiences that emphasize both the simplicity of its product portfolio, as well as the consistency in the Casper brand experience and product design across all of its channels.
Direct-to-Consumer Channel
Casper.com provides a friendly and educational shopping experience, inviting consumers to enter and explore the company’s brand. The site offers the company’s entire product portfolio and features sleep education, empowering the consumer to design a sleep experience that meets their individual needs. The company uses its website to facilitate discovery of its physical locations through its store directory and sleep trial appointment portal.
As of December 31, 2020, the company had 67 retail store locations across the United States and Canada. Its retail store culture is built around a one team concept with deep expertise from a variety of top retailers and industries.
Retail Partnerships
The company’s network of retail partners’ stores and websites improves Casper’s brand awareness, builds credibility and opens up new geographies and demographics to it. As of December 31, 2020, the company had over 20 retail partners, including Amazon LLC, Costco, Hudson's Bay Company, and Target, that sell its products across the United States and Canada. Casper products sold through retail partners are consistent with respect to the SKUs, pricing, and product features offered in the company’s direct-to-consumer channel to ensure a cohesive customer-centric focus across all channels.
Intellectual Property
The company owns approximately four issued U.S. utility patents, six pending U.S. patent applications and 19 pending foreign patent applications. If the U.S. utility patents issued to the company are maintained until the end of their terms, they will expire between 2035 and 2037. The company has also obtained protection for certain of its product designs. It owns at least one registered design in each of Europe, Brazil, Canada, China, and Mexico, six in Australia, and own eight U.S. design patents and nine U.S. design patent applications. Assuming they are maintained, the U.S. design patents currently issued to the company will expire between 2032 and 2037, and the foreign design registrations will expire between 2025 and 2044. The company also owns approximately 32 U.S. trademark registrations, 136 foreign trademark registrations, 35 pending U.S. trademark applications and 43 pending foreign trademark applications, including for the marks Casper, Awaken the Potential of a Well-Rested World and We’re a Sleep Company, We Can Dream Can’t We?.
Seasonality
The company’s revenue includes a seasonal component, with the highest sales activity normally occurring during the second and third quarters of the year due to back-to-school, home moves and other seasonal factors, along with seasonal promotions it offers during these quarters (year ended December 31, 2020). The COVID-19 pandemic, as well as certain supply chain disruptions primarily in the third quarter impacted the company’s quarterly comparability in 2020.
Competition
The company competes with large retailers, such as Amazon LLC and Wal-Mart.
Government Regulation
Moreover, as a direct-to-consumer retailer, the company is subject to additional laws and regulations that apply to retailers generally and govern the marketing and sale of its products and the operation of both its retail stores and its e-commerce activities. Advertising and marketing of its products in the United States are subject to regulation by the FTC under the Federal Trade Commission Act (FTC Act). The company is required to comply with the Payment Card Industry Data Security Standards, or PCI DSS, because it collects credit card information.
History
The company was incorporated as a Delaware corporation in 2013. It was formerly known as Providence Mattress Company and changed its name to Casper Sleep Inc. in 2014.
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